December 21, 2006 -- GlaxoSmithKline will pay $55 million to buy Praecis Pharma, a drug discovery company with several early-stage drug programs. The small purchase price represents little confidence in the assets of Praecis, and that confidence is diminished further by Praecis’ relatively large cash hoard of $40 million at the end of the third quarter, because it means GSK is paying only about $15 million for the ongoing business. We look at the deal...
